Lender ties broker partnership to wider criteria changes
Hope Capital Property Finance has announced a strategic partnership with Scotland-based brokerage Futurity Finance, built on more than £13 million in completions over the past 12 months. Every deal between the two firms has reached full redemption, according to Hope Capital.
The relationship began when Hope Capital's national account manager, David Weir, met Futurity Finance director Stephen Gallagher to discuss a complex London deal. It has grown into a working structure in which senior underwriter Andrew Bate oversees the majority of cases, giving Gallagher direct access to underwriting throughout each transaction, Hope Capital said.
Futurity Finance's in-house surveying team adds an extra layer of due diligence, testing exit viability and identifying multiple exit routes before presenting deals to Hope Capital, per the announcement.
Criteria changes coincide with partnership news
Hope Capital has reportedly widened its lending on below-market-value transactions to up to 75% of open market value, subject to a full valuation, and doubled its instant valuation threshold on qualifying residential cases from £500,000 to £1 million. The lender has also expanded dual legal representation to £1 million, including in Scotland. Hope Capital's minimum loan size remains £100,000, per the lender's published lending criteria.
David Weir said the Futurity Finance relationship has "helped us improve our offering in Scotland, adjusting our view on our below market value criteria which we hadn't previously taken a view on." That comment refers specifically to Hope Capital's Scottish underwriting view; the broader BMV threshold change to 75% OMV was reported as a UK-wide product update.
Direct access to underwriting cited as key factor
Stephen Gallagher, director at Futurity Finance, said: "We always start with the exit in mind. Ensuring we have a solid foundation to build the rest of the deal around is essential to how we approach Hope Capital Property Finance. Having a strong exit and well-thought-out plan allows me to work with David to put together a deal with full confidence while also providing value to my clients."
Andrew Bate, senior underwriter at Hope Capital Property Finance, said: "We have full confidence in every deal that comes to us from Futurity Finance, because of the work they put in and the level of detail we receive. It means we can move quickly and make decisions with certainty."
David Weir, national account manager at Hope Capital Property Finance, added: "Working with Futurity Finance has helped us improve our offering in Scotland, adjusting our view on our below market value criteria which we hadn't previously taken a view on."
Scottish market carries distinct requirements
Bridging finance in Scotland operates under a different legal framework than in England and Wales, with enforcement of securities more court-regulated and requiring formal notices and Sheriff Officer involvement in some cases, according to specialist brokers. Lenders unfamiliar with these distinctions sometimes narrow their Scottish appetite or lower loan-to-value limits, a factor brokers cite as making established lender relationships relevant for complex cases.
Hope Capital was established in 2011 and lends against residential, semi-commercial and commercial property across England, Wales and Scotland, with fixed rates starting at 0.79% at 75% LTV, according to the firm.
